What Has Been the Progress and Growth of the Factoring Market in Recent Years?
The factoring market has seen considerable growth due to a variety of factors.
• Over the previous years, there has been significant growth in the size of the factoring market. This market is projected to expand from $5279.73 billion in 2024 to $5733.39 billion in 2025, with a compound annual growth rate (CAGR) of 8.6%.
The growth seen in the historic period is due to robust economic expansion in developing markets, a surge in trading activities, an increase in the number of small to medium-sized businesses, and an increased necessity for working capital.
What Is The Expected Growth In The Factoring Market Size?
The factoring market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for robust expansion in the factoring market size in the coming years. A projected compound annual growth rate (CAGR) of 8.5% is set to push the market to $7935.05 billion by 2029.
The uplift in the forecast period is due to factors such as increasing globalization and cross-border payments, escalating governmental backing, and a burgeoning transportation sector. The forecast period will also witness significant trends like the rise of cloud-based factoring platforms, the introduction of environmental, social, and governance (ESG) factors, and emphasis on strategic alliances and partnerships.
What Are the Critical Driver Fuelling the Factoring Market's Growth?
The growth of the factoring market is expected to get a boost from escalating cross-border trade activities. Cross-border trade comprises all operations related to billing, collection and customer support that the Licensee, its affiliates or related businesses undertake relating to the import, export or transit of capacity or power, as outlined in this license. Factoring provides an immediate cash flow solution for cross-border trade firms. It does this by purchasing these companies' receivables, thereby giving them instant ability to fund their growth and operations. This mechanism also enables them to elevate their borrowing capacity and obtain necessary resources to maintain their competitiveness globally. For example, InterTradeIreland, a UK-based cross-border economic development agency, noted in 2024 that in 2022, trade between Northern Ireland and Ireland cross-border was approximately £10 billion (€12 billion), marking a 15% increase from the preceding year. This upswing in cross-border trade activities is thus contributing to the expansion of the factoring market.
What Are The Primary Segments In The Global Factoring Market?
The factoring market covered in this report is segmented –
1) By Type: Recourse, Non-Recourse
2) By Organization Size: Small And Medium Enterprises, Large Enterprises
3) By Category: International, Domestic
4) By Application: Transportation, Healthcare, Construction, Manufacturing, Other Applications
Subsegments:
1) By Recourse Factoring: Standard Recourse Factoring, Selective Recourse Factoring
2) By Non-Recourse Factoring: Full-Service Non-Recourse Factoring, Partial Non-Recourse Factoring
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Which Key Trends Are Driving Changes In The Factoring Market?
The dominant trend growing in popularity in the factoring market is product innovation. Various key market players in the factoring sector are significantly leaning towards launching innovative solutions to maintain their market stance. Kyriba, a financial and IT solutions provider based in the US, for example, unveiled a cutting-edge factoring solution named Kyriba Receivables Finance in December 2022. This advanced solution simplifies the invoice factoring procedure and offers a user-friendly platform for payment management. It improves cash flow visibility and simplifies monitoring and managing client accounts. Automated payment processing, a secure dashboard that offers real-time updates on invoices and payments are some of the additional features provided by the platform. Furthermore, it also affords a spectrum of credit and financing options to promptly assist businesses in gaining capital.
Who Are the Key Players in the Factoring Market?
Major companies operating in the factoring market include:
• Société Générale S.A.
• BNP Paribas
• China Construction Bank Corporation
• Deutsche Bank AG
• HSBC Group,Barclays Bank PLC
• Jp Morgan Chase
• Mizuho Financial Group. Inc.
• Wells Fargo & Company
• Eurobank
• one PMF Capital
• Sheng Ye Capital
• Velotrade
• India Factoring and Finance Solutions Pvt. Ltd.
• Freightnet
• Tim Finance
• Business Capital Financial Group
• Work Capital
• Cash flow Finance
• IDS
• Oceana
• Globalia Conseil
• Credit Agricole
• Bibby Factor France
• PMF
• Finiata
• Kurn Rechtsanwälte
• Eurofactor Credit
• Arvato Financial Solutions
• CRX Markets
• Unicredit Bank
• SberFactoring
• EXIMBANK
• Finora Bank
• VTB Factoring LLC
• TAM Finans
• Ifis Finance I.F.N
• Instant Factoring
• Otp Factoring SRL
• SME Banking Club
• DSA Factors
• REV Capital
• Rosenthal & Rosenthal. Inc.
• The Southern Bank Company
• American Receivable
• Factor Funding Co
• Banco do Brasil S.A.
• Caixa Econômica Federal
• Santander Brasil
• Factors Chain International Argentina (FCI Argentina)
• Fintech Floid
• Supervielle Factoring
• Dar Al Tawreeq
• Reem Finance PJSC
• iFund Factoring Forfaiting Services
• Saudi Real Estate Refinance Company
• Lendo
• Asyaf Investments
• ING Factoring
• Halperin Consulting Group
• Platinum Financing Group
• Afreximbank
• FirstRand Bank
• Stanbic Bank
• NMB Bank
What Is The Most Dominant Region In The Factoring Market?
Asia-Pacific was the largest region in the factoring market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the factoring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
